AbstractThere has been a resistance in the UK to investigate the conservation of energy as a cost effective alternative to new supply capacity. There are techniques available and being used in the USA and Norway to do the calculations. The payback period for energy conservation measures is much less than for new supply and can provide a real rate of return of 15%.The conclusion is that a misallocation of resources is occurring in the UK and the government should require the utilities to undertake supply versus demand calculations. It is in all our economic, social and environmental interests for those sums to be done and the conclusions reached and acted upon.